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Cairo University Faculty of Engineering Mechanical Design & Production Dept.

t. Production & Operations Management (MDP408b) Spring 2011 Tutorial #6: Materials requirement planning
Problems to be solved by students in class with guidance from the TA: -Problems to be solved by the TA in class: 1 Problems to be solved by students and submitted next week: 2 1) Elnajjar Co. has gained a long-standing reputation of producing top quality office and school wooden furniture. One of its product lines is the stool illustrated in the figure below. Based on confirmed customer orders received from schools and universities along with forecasted demand, the following table summarizes the planned production of stools for the next 12 months. 1 210 2 340 3 380 4 450 5 520 6 840 7 720 8 315 9 222 10 120 11 98 12 55

Month Demand

Each component of the leg assembly (long rails, short rails and legs) is ordered from a local supplier with a lot size of 5000 and a lead time of one month. The leg assembly has a lot size of 1000 and lead time of one month. The seat is produced at Elnaggar Co. to insure the quality of the surface and correct profile. The lot-sizing rule used for seats is lotfor-lot and its lead time is 2 months. For the stool assembly, the management decided to use a fixed order period of 3 months. The lead time for the stool assembly is one month. The following table summarizes the current on-hand and scheduled receipts for each item in the product structure. Item Stool Seat Leg assembly Long rails Short rails Legs Current on-hand 1000 500 200 2000 2000 2000 Scheduled receipts Quantity ----800 -------

Month ----2 -------

Construct the MRP sheets for Stool, Leg Assembly, Seat and Long rail.

2) The product structure trees for products A and F are shown below. Part of the master production schedule showing when the company will complete production operations for quantities of these products is shown in the table below. The lot-sizing rule for A and F is lot-for-lot and there is no current on-hand inventory or scheduled receipts for both of them. There is a scheduled receipt of 1000 units of item B in the first week and another 1000 units in the third week. If the lot-forlot lot-sizing rule is used for item B, find the net requirements for item B throughout the first 12 weeks of the master schedule. Week Product A Product F 1 2 3 4 5 6 7 8 9 10 11 12 13 200 150 250 160 250 300 325 300 225 180 150 80 180 125 200 210 100 180 150 250 200 260
F

LT = 1 wk

LT = 2 wks

2B LT = 3 wks

3C LT = 2 wks

3B LT = 3 wks

2X LT = 4 wks

1Y LT = 2 wks